Mutual fund card method and system

ABSTRACT

A computerized method and system for implementing such method, the method comprising establishing a card payment instrument account for an approved customer and an investment account for the benefit of the approved customer. A rebate is calculated periodically based on credit card usage and the rebate is applied to fund the investment account periodically. The rebate is the only funding of the investment account accomplished through the card payment instrument account.

FIELD OF THE INVENTION

[0001] The present invention relates generally to a method and systemfor a card payment instrument that is associated with an investmentaccount. A holder of the card payment instrument can receive rebatesbased on the usage of the card. The rebates are transferred periodicallyto an investment account that is established for the benefit of thecardholder.

BACKGROUND OF THE INVENTION

[0002] It is increasingly common that consumers pay for many of theirproducts and services using credit cards, charge cards, debit cards,bankcards, stored value cards and like card payment instruments ratherthan using cash or checks. Consumers do this because they find it moreconvenient than sending or using cash or checks. Also, consumers are notconstrained by cash at hand. For instance, credit cards present uniqueadvantages insofar as they provide a revolving line of credit that canbe accessed when personal funds are low. Consumers are inclined to usecredit cards versus other means for purchases because itemized reportsof transactions (citing amounts and merchant names) are generated eachmonth. This is useful for monitoring spending habits, detecting fraud orerrors, disputing charges, proving purchase when returning items withouta conventional receipt, and providing expense records for end-of-yeartax purposes.

[0003] In fact, in today's so-called “plastic economy” it isincreasingly common that consumers use the credit card as a first,rather than last, resort. Many consumers use credit cards for mostnon-trivial transactions, taking advantage of the typical 20-25 dayinterest-free grace period and paying their balances off each month,sometimes thousands of dollars. At the other end of the spectrum, manyconsumers who have expenses that exceed their monthly income on aregular basis use the available revolving credit-line to manage theirspending flow. In sum, there is a large body of credit or othercardholders in modem society who engage in a significant volume oftransactions on a regular, continuous basis.

[0004] The modem plastic economy greatly benefits merchants and serviceproviders because the convenience and instant credit access lead toincreased sales. They also benefit the issuer of the credit cards andother card payment instruments such as an issuing bank because for eachtransaction an “interchange” fee (typically 1-4%) administered by thecredit card associations such as Visa® and MasterCard® is distributed tothe issuer. The interchange fee is typically deducted from the overalltransaction amount. Moreover, the issuer of the credit card benefitsfrom the elevated interest payments made by consumers carrying abalance. Therefore, in the card issuer/merchant/customer model of a cardpayment instrument system such as a credit card system, the card issuersand merchants receive substantial benefits.

[0005] Thus, consumers tend to use their conventional credit cards forcertain types of purchases, such as retail transactions in shoppingmalls, groceries at foodstores, dinner at restaurants, airline ticketsand so forth. The credit card's attributes make it well-suited for usein such transactions and the average consumer is likely to reach forhis/her credit card rather than for cash in such circumstances due toconvenience. However, despite the wide use of credit cards in the modemeconomy, there is still a need to increase their use especially innon-traditional credit card transactions and financial services.

[0006] Some card issuers have sought to employ rebates in order toincrease use of credit cards. Credit card rebate systems, such as theDiscover®, card or the like, provide a rebate tied to general cardusage. The entire benefit is enjoyed by consumers who receive a check orcredit on their account. However, such credit card rebate systemsprovide no particular long-term benefits to the cardholder or the cardissuer—especially benefits that relate to the card issuers business.There is limited loyalty-building to encourage cardholders to maintaintheir existing accounts or open new ones. Moreover, because the rebateis sent directly to the consumer, who can spend it as he/she pleases,there is no mechanism to encourage the consumer to consider otherfinancial products offered by the card issuer or associated financialcompanies. Nor is there a way to channel funds back to the card issuerto expand business and cross-sell. This is a lost opportunity andsignificant disadvantage.

[0007] Others have suggested credit card systems that transfer apredetermined amount of money to an investment account periodically andbill the cardholder through the credit card account. For example, U.S.Pat. No. 5,787,404 to Fernandez-Holmann describes such a credit cardsystem in combination with a rebate that is also transferred to theinvestment account. Such credit card systems, however, are not favoredby cardholders because they require forced investments on a periodicbasis. In addition, many brokerages and securities firms do not offercard acceptance for investment purchases.

SUMMARY OF THE INVENTION

[0008] The present invention overcomes one or more of the aforementionedlimitations of existing card payment systems and methods. Accordingly,the present invention is directed to a system and method for a cardpayment instrument with a rebate based on the usage of the card paymentinstrument. The rebate can only be applied for funding an investmentaccount established for the benefit of the cardholder. Thus, the presentinvention encourages increased usage of the card payment instrument andthe establishment of new investment accounts.

[0009] It is an object of the invention to provide a card paymentinstruiment whereby a predetermined percentage of consumer card paymentinstrument spending is rebated so as to encourage customer use of thecard payment instrument and increase loyalty to the card paymentinstrument issuer.

[0010] It is another object of the invention to provide an automaticmethod for establishing an investment account which relieves theconsumer of the burden of having to proactively establish an investmentaccount, and promotes new account openings for the investment accountprovider.

[0011] It is yet another object of the invention to provide a cardpayment instrument where the card payment instrument issuer and theinvestment account provider can share the cost of the rebate program sothat a significant rebate can be provided without imposing excessivecosts on the card payment instrument issuer.

[0012] To achieve these and other objects, which will become readilyapparent to a person skilled in this art from the following discussion,the present invention, in its broadest aspects, is directed to acomputerized method and system for implementing such method, the methodcomprising establishing a card payment instrument account for anapproved customer and an investment account for the benefit of theapproved customer. A rebate is calculated periodically based on creditcard usage and the rebate is applied to fund the investment accountperiodically. The rebate is the only funding of the investment accountaccomplished through the card payment instrument account. Preferably,the card payment instrument is issued by the card payment instrumentissuer in partnership with the investment account provider. Theinvestment account provider is preferably a financial institution suchas a bank, savings and loan association, mutual fund, insurance company,brokerage, credit union or any other entity authorized by law to acceptdeposits from, or sell investments, mutual funds or annuities to, thegeneral public.

[0013] In one embodiment of the present invention the card paymentinstrument is a credit card and the investment account is a mutual fundaccount provided by an investment account provider. Preferably, theconsumer signs up for the card knowing about the ability to earn dollarsthat fund a mutual fund. The rebate is preferably calculated as apercentage of the value of the net-purchases by the customer using thecredit card. The rebate is calculated periodically, such as on a monthlyor quarterly basis and a statement is issued to the cardholder whichincludes an entry for an estimated rebate for the current period as wellas the total accumulated rebate. The statement may further include anoffer to the cardholder to activate and fund an investment account whichis established automatically for his/her benefit by the investmentaccount provider if this option wasn't taken by the consumer at theoutset. Upon acceptance of the offer by the cardholder, the mutual fundaccount is automatically activated and funded with the accumulatedpurchase rebates. The mutual fund account is funded with the purchaserebates on a monthly basis, preferably once or twice a year, morepreferably on a semi-annual basis and even more preferably on a yearlybasis. The rebate amount is preferably transferred to the investmentaccount electronically, however, other ways of transferring could beused including, for instance, submitting the rebate as a two-party checkwhich can be submitted by the consumer to the investment accountprovider. An investment account statement is issued to the customerpreferably by the investment account provider on a periodic basis. Theinvestment account provider is preferably an independent entity from thecard payment instrument issuer and the cost or funding of the rebateprogram is shared by both entities. The customer may independently fundthe investment account at any time.

[0014] This method and system which is also referred to hereinafter asthe mutual fund card (“MFC”) is advantageous in a number of respects.First it encourages the creation of new investment accounts andmaintenance of existing credit card accounts. Second, it providesinvestment account companies such as brokerage companies an entry intothe credit card economy. It is beneficial to associated investmentaccount providers such as mutual fund issuers who seek expandedopportunities to create a loyalty and retention platform for new orexisting customers. Moreover, the funding of the investment account withthe purchase rebates serves as a powerful incentive to customers to stayloyal to the credit card issuer, increase the usage of their creditcards and open new investment accounts or maintain existing ones withassociated financial institutions. Thus, the MFC system and method opensthe door for unique partnership relationships between independentbusiness entities, not otherwise readily established between financialinstitutions such as for example banks and brokerage companies.

[0015] The accompanying drawings further illustrate the presentinvention. They illustrate several specific embodiments of the inventionand, together with the description, serve to explain the principles ofthe invention. However, it will become apparent from the drawings anddescription that other embodiments, objects, advantages and benefits ofthe invention also exist. Thus, it should be understood that thedrawings and the specific embodiments are given for purposes ofillustrating the invention and are not intended to limit the scope ofthe invention which is delineated in the appended claims.

[0016] Additional features and advantages of the invention will be setforth in the description that follows, and in part will be apparent fromthe description, or may be learned by practice of the invention. Theobjectives and other advantages of the invention will be realized andattained by the system and methods, particularly pointed out in thewritten description and claims hereof as well as the appended drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

[0017] The purpose and advantages of the present invention will beapparent to those of skill in the art from the following detaileddescription in conjunction with the appended drawings in which likereference characters are used to indicate like elements, and in which:

[0018]FIG. 1 is a block diagram illustrating the relationship betweencardholders, service providers, merchants, the card issuer system andinvestment account provider, according to an embodiment of the presentinvention.

[0019]FIG. 2 is a block diagram according to an embodiment of theinvention illustrating the components of a card issuer system.

[0020]FIG. 3 is a block diagram according to an embodiment of theinvention illustrating an exemplary credit card bill issued to acardholder, including summaries of the rebate balance.

[0021]FIG. 4 is a block diagram according to an embodiment of theinvention illustrating an exemplary mutual find account statement,including a summary of credits rebated by a card issuer system.

[0022]FIG. 5 is a flowchart illustrating a method according to anembodiment of the invention for providing rebates to a cardholder'smutual fund account based on card usage.

DETAILED DESCRIPTION OF THE INVENTION

[0023] The present invention is directed to a method and apparatus for acard payment instrument with a rebate that is associated with aninvestment account, whereby rebates based on card usage are transferredto the investment account periodically for funding the investmentaccount. The term “card payment instrument” is used herein to meancredit cards, multi-featured credit cards, debit cards, bank cards,stored value cards, transaction cards and like instruments. According toone embodiment of the invention a credit card is issued by a credit cardissuer such as a bank in partnership with an investment account providersuch as a brokerage company. Preferably, the brokerage company offersshares in a mutual fund investment program. A credit issuer such as abank issues approved customers a credit card having a line of credit anda predetermined annual percentage rate (APR). The card is preferablymarked with information of the identity of the issuing bank as well asthe investment account provider. When the card is issued, the banknotifies the partner investment account provider to open a mutual fundaccount for the benefit of the cardholder. Net purchases made with thecredit card are tracked and at the end of predetermined periods, afixed, predetermined percentage, preferably from about 0.5 to about 2.0and more preferably from about 0.75 to about 1.25 percent of the totalvalue of the net purchases is rebated by the bank into the mutual fundaccount. During special marketing promotional periods, the rebate amountcan be increased. The cost of the rebate program is preferably absorbedby both the credit card issuer and the investment account provider whichallows for greater rebates to the consumer. In the normal course ofbusiness, the partner investment account provider may issue the customera mutual fund or investment account statement. Alternatively, a combinedcredit card account and mutual find account statement may be issued,preferably by the credit card issuer. In addition, the customer maypurchase additional mutual fund shares at anytime.

[0024] Overview of the Invention According to One Embodiment

[0025]FIG. 1 provides an overview of the relationships between thevarious components according to one embodiment of the present invention,and may comprise cardholder A 125, cardholder B 130, cardholder X 135;card issuer system 100; service providers 120 and merchants 122; andinvestment account provider 105. Card issuer system 100 may comprise aserver-based system carrying out the operations of the card issuer, suchas for receiving applications, maintaining account data, processingtransactions, and interfacing with cardholders, merchants, serviceproviders and investment account providers.

[0026] Service providers 120 and merchants 122 illustrate the variousvendors that interact with cardholders A-X (blocks 125-135) and cardissuer 100 during transactions involving the purchase of goods andservices.

[0027] Investment account provider 105 represents an investment accountprovider participating as the partner in the mutual fund card programassociated with the present invention. Investment account provider 105may comprise personnel and/or computer means for receiving andprocessing usage rebate funds or “points” submitted by card issuersystem 100 or from individual cardholders, such as cardholders A-X(blocks 125-135). In one embodiment, the invention provides forinvestment account provider 105 to receive and process checks or wiretransfers from card issuer system 100 so that the card usage rebate fora given time period is sent from the card issuer to the investmentaccount provider to be credited against the benefiting investmentaccount. Preferably the investment account is a mutual fund account. Ina related embodiment, the invention provides for investment accountprovider 105 to process electronic transfers (such as automated clearinghouse drafts) from card issuer system 100 for each approved cardholderthat are processed in an automated or semi-automated fashion to creditthe proper investment account with the proper card usage rebates. Inanother embodiment, the invention provides for investment accountprovider 105 to receive and process two-party checks, initially issuedto cardholders from card issuer system 100, that are forwarded by thecardholders to the investment account provider for depositing into therespective cardholder investment accounts. These checks would be made sothat cardholders could only deposit them to their investment accounts,thus providing an incentive to the cardholders to activate and/ormaintain the investment accounts.

[0028] In the preferred embodiment, investment account provider 105represents an investment account provider that is partnered with thecard issuer issuing a so-called “co-branded” credit instrument. For suchco-branded credit or debit cards, the physical card may be issued in theinvestment account provider's name (and also in the card issuer's name)to take advantage of the benefits of cross-selling and to facilitateloyalty-building. In another embodiment, the credit card with the rebatefeature is not marketed as a co-branded offering per se, but cardholdersare offered the option to add the investment account feature at anytime.

[0029] Cardholder A 125, cardholder B 130 and cardholder X 135 representcardholders maintaining card accounts according to the presentinvention. In other words, these cardholders maintain a credit or debitcard account with the card issuer whereby a predetermined percentage ofcard usage is accumulated and returned as a rebate to be applied forfunding an investment account set-up by the brokerage provider for thebenefit of each cardholder. In a preferred embodiment the investmentaccounts are provided by an investment account provider that isassociated with the card-issuer.

[0030] In an alternate embodiment, cardholders can maintain investmentaccounts with investment account providers that are not formallypartnered with the card issuer, as described previously. In this case,the card issuer has not entered into a formal arrangement with theinvestment account provider, but rather is marketing the card toconsumers on the basis that purchase rebates will be transferred to aninvestment account designated by the cardholder. This rebate may alsotake the form of a two-party check sent to the cardholder for depositingit into the investment account. Or the rebate could be sent directly tothe investment account provider (by check, wire transfer, electronicpayment, and the like). One of the benefits of this alternate embodimentis that it encourages non-partnered investment account providers toconsider a formal partnering relationship (e.g., a co-branded card).This is because, an initially non-partnered investment account providergradually becomes aware of the profit and marketing potential that existfrom co-branding and participating in the program. This benefits boththe card issuer and investment account provider because processing canbe streamlined (e.g., rebates can be transferred electronically andautomatically, even in batch fashion, rather than through wire transfersor checks) and cross-marketing and joint loyalty benefits accrue. Forexample, the card issuer and investment account provider cancross-market whereby customers of the one are solicited to purchase theproducts or engage the services of the other. A co-branded debit cardcould serve as a consumer access vehicle to an investment accountprovider deposit account such as a money market fund. This is asubstantial advantage.

[0031] Cardholders A-X (blocks 125-135) interface with card issuersystem 100 for purposes of payment and receipt of bills and the likeusing the mail system, Internet or like shared network. Cardholders A-X(blocks 125-135) interface with merchants 122 and service providers 120to consummate purchases and the like in-person or using the mail systemor Internet or like shared network. Cardholders A-X (blocks 125-135)interface with investment account providers 105 for purposes of openingaccounts, submission of payments, receipt of bills and the like usingthe mail system, Internet or like shared network.

[0032] As noted above, the present invention may provide a percentagerebate based on card usage that can be paid by the card issuer. In oneembodiment, that amount may be fixed at 1% of the value of net-purchasescalculated periodically and vested after a standard period, such as aquarter or year. In this embodiment, the balance of the usage rebatewill be updated and reported to the cardholder on a periodic basis, suchas at the time each monthly card statement is issued. The usage rebaterate can vary, for example, based on the investment account provider'sconcern (higher or lower rebate rates depending on the investmentaccount provider and the agreement with the card issuer) and based onthe cardmember (higher or lower rebate rates based on the cardmember'spast or ongoing purchasing behavior, credit rating, levels of spending[e.g., a higher rebate rate at higher levels of spending], loyalty interms of how long the cardmember has been associated with the cardissuer and/or the investment account provider, payment performance,etc.). In one embodiment, the funding for the usage rebate may be sharedbetween the card issuer and an investment account provider as bothbenefit from the arrangement. In yet another embodiment, the rebatepercentage is fixed at a predetermined level provided by the credit cardissuer.

[0033] Regarding the accrual or computation period, the usage rebate maybe computed on a periodic basis, such as on a monthly basis. Sincecredit card issuers generally deliver paper or on-line statements tocardholders on a monthly basis, it may be convenient and cost-effectiveto accrue and report the usage rebate in similar fashion. Timing forpayout, i.e., when the rebate funds are transferred to the investmentaccount provider for depositing into the investment account, can vary aswell. In one embodiment, the payout period may be annually orsemi-annually so as to reduce processing costs for the cardholder andinvestment account provider. It can also enhance cardmember loyalty toboth the card issuer and investment account provider if the payout ispredicated on the cardmember still being an active account holder. Forexample, a cardmember contemplating canceling the credit account and/orthe investment account program in July may be less inclined to do so ifhe/she knows that the accumulated rebate that will mature or vest laterin September would be lost.

[0034] The present invention is not limited to a specific type ofinvestment account. A variety of different types of investment could beused such as “e brokerage” accounts, money market funds, general stockinvestment accounts and employee stock purchase account. As can bereadily appreciated, this means that the present invention providessignificant opportunities for financial institutions such as investmentaccount providers to market cardmembers on a broad spectrum ofinvestment products that are available.

[0035] The Card Issuer System

[0036]FIG. 2 illustrates card issuer system 100, which may comprisetransaction processor system 205; account database 210; report processorsystem 215; application processor system 220; bill processing system225; credit bureau database 230; rebate processing system 235; andrebate issue and transfer system 240. Those of skill in the art shouldappreciate that the allocation of the aforementioned elements isexemplary and. functional, the purpose here being to explain the presentinvention most clearly. The functions performed by said elements couldbe allocated differently, such that the elements could be combined orfurther divided depending on the requirements of specific implementationinto hardware and/or software. Additionally, the elements of the systemneed hot be co-located, but could reside at geographically distinctlocations and could interface using communications technologies wellknown in the art, such as direct-dial connections, hard-wire link, theInternet or IPng (Internet Protocol next generation), satellite,microwave, cellular networks and so on.

[0037] Transaction processor system 205 is a computerized system, whichmay be a server-based system, for processing transactions in the creditcard-based system, such as consummating purchases (issuing transactioncodes, declines, call the bank [“call me”] referrals, etc.), processingpayments from cardholders, and processing transactions with investmentaccount providers. Account database 210 may comprise one or more datamodules having account data for the cardholders, including investmentaccount data and investment account provider data. Report processorsystem 215 generates reports or statements for the card issuer and/orinvestment account provider company summarizing cardholder activity,profits and revenue and the like. Application processor system 220receives and processes applications for credit cards, and may set upaccounts when applications are approved. In one embodiment, applicationprocessor 220 could also receive applications for investment accountsand process said requests or investment account provider for processing.Bill processing system 225 prepares the bills to be sent to cardholders,including a summary of charges, balance due, accrued rebate balance, duedate and the like. The bills may optionally include investment accountinformation. Credit bureau database 230 may comprise a database accessedfor application processing for making the underwriting determinationassociated with credit card approval and/or investment account approval.Since the present invention is susceptible to application to debitcards, the aforementioned elements could perform the correspondingoperations for a debit card instrument.

[0038] Rebate processing system 235 performs the processing associatedwith accounts established for cardholders under the present inventionand, accordingly, computes card usage over the proper period, computesthe usage rebate, and maintains the usage rebate balance forparticipating cardholders. Rebate issue and transfer system 240 performsthe processing and transactions for issuing and transferring the usagerebates in the appropriate amounts and at the proper times. Thus, rebateissue and transfer system 240 may determine that a six-month rebate fora certain investment account will vest for a particular cardholder onDecember 15 and transfer said rebate via check, wire transfer, orelectronic transfer to the investment account. Data stored in accountdatabase 210 may be accessed to inform rebate issue and transfer system240 whether the form of the transfer should be check, wire or electronicfor a particular investment account or investment account company.Rebate issue and transfer system 240 may determine that the usage rebateshould be issued to the cardholder in the form of a two-party check. Asexplained above, the rebate is preferably based on the net purchases ina credit card account.

[0039] Exemplary Credit Card and Investment Account Statements for theInvention

[0040] FIGS. 3 illustrates an exemplary statement (bill) issued to acardholder according to the invention. As those of skill in the art willappreciate, the bill could be issued through the mail or via facsimileor Internet or like network interface. As depicted by FIG. 3, the creditcard statement resembles a typical credit card statement, identifyingthe date, transaction codes, vendor/merchant ID's and amounts for thetransactions from the last period. The previous balance, new charges,payments and new balance are also reported. For purposes of reportingthe status of the usage rebate, the card usage for the period (here forthe month it is “$XXXX.XX”) is reported, as well as the usage rebate forthe period as computed based on the rebate rate (e.g., 1% of $XXXX.XXyields a usage rebate for the month in the amount of $XX.XX). Thecurrent rebate value or balance is reported (here it is “$YYY.YY”),reflecting the accrued value of the usage rebate that has yet to vest orbe paid out. The rebate payout date reflecting when the usage rebatewill vest or be made available is reported (here it is “X/X/XX”), as isthe identity of the beneficiary account (investment account provideraccount) to which the rebate may be applied.

[0041]FIG. 4 illustrates an exemplary investment account providerstatement that might be generated by the investment account provideraccording to the present invention. As would typically be the case, theinvestment account number, number of shares, and date are listed.Credits received from a card issuer in the form of usage rebates (hereit is “$YYY.YY”) according to the present invention may be listed ascredits, with an explanation identifying the amount and source of thecredits (usage rebates). Rebates that have not been transferred to theinvestment account as of the date of the statement may also be includedin the statement as future credits.

[0042] It should be noted that the investment account provider statementillustrated by FIG. 4 is more illustrative of the card usage rebateapplication where rebate funds are sent or transferred from the cardissuer to the investment account provider. In the embodiment providingfor rebate funds to be sent to the cardholder in the form of a two-partycheck or the like, the cardholder will forward the rebate check to theinvestment account provider.

[0043] A Method for Providing Card Usage Rebates for Funding A Mutualfund Account

[0044] According to an embodiment of the present invention, FIG. 5depicts a method for a credit card system providing card usage rebatesto a cardholder for application to a mutual fund account set-up by aninvestment account provider for the benefit of the cardholder. Where theinstrument is a debit card, the steps are substantially the same exceptthe usage is based on a debit instrument.

[0045] A card issuer enters into an arrangement with an investmentaccount provider (e.g., see account database 210), according to step500. As previously noted, this arrangement may be in the form of apartnering or co-branding undertaking whereby the credit or debit cardsare issued under the credit issuer's name and the two entities thecredit card issuer and the investment account provider havepre-established procedures for handling the processing associated withthe accrual and application of rebates to a mutual fund account.Alternatively, the investment account provider and card issuer may nothave a partnering relationship, or have any pre-existing relationship atall, but step 500 includes the interface and communication between thetwo entities for the usage rebate program to be implemented for a givencardholder.

[0046] According to step 505, the card issuer (or its agent) solicits ageneral consumer to apply for mutual fund card. The application isprocessed and approved by the card issuer (e.g., see applicationprocessor system 220, credit bureau database 230), according. to step510. Card issuer notifies investment account provider to set-up a mutualfund account for the approved cardholder according to step 515. Themutual find account card is linked or associated with the credit card(or debit) account (e.g., see account database 210), according to step520. The cardholder uses the credit (or debit) card to purchase goodsand services from merchants (or service providers) (e.g., seetransaction processor system 205), according to step 525. A designatedpercentage of credit card purchases are calculated and accrue in theusage rebate account (e.g., see rebate processing system 235 and accountdatabase 210), according to step 530.

[0047] The card issuer provides a periodic accounting of the usagerebate balance to the cardholder (e.g., see bill processing system 225),according to step 535. The card issuer issues a rebate (see, e.g.,module 240, FIG. 2) when the usage rebate “vests” or is due to be paidout, according to step 540. If the rebate is to be a so-called“automatic” payout (sent from the card issuer to the investment accountconcern), according to the “Y” (yes) branch of block 545, then the cardissuer sends or transfers the rebate to the investment account concernto be credited to the proper investment account provider account (e.g.,see module 240, FIG. 2), according to step 550. If the rebate is not aso-called “automatic” rebate, according to the “N” (no) branch of block545, the card issuer sends a check (two-party check or bank draft, orwire or electronic transfer, or the equivalent) to the cardholder (e.g.,see module 240, FIG. 2), according to step 555.

[0048] According to step 570, the cardholder sends the check or likeinstrument to the investment account provider. According to step 575,the investment account provider issues a mutual fund statement to thecardholder. The cardholder can make independent deposits to the mutualfund account, according to step 560.

[0049] Other embodiments and uses of this invention will be apparent tothose having ordinary skill in the art upon consideration of thespecification and practice of the invention disclosed herein. Thespecification and examples given should be considered exemplary only,and it is contemplated that the appended claims will cover any othersuch embodiments or modifications as fall within the true scope of theinvention.

What is claimed is:
 1. A computerized method comprising: establishing acard payment instrument account for an approved cardholder having arebate feature available to the cardholder only for funding aninvestment account; establishing an investment account for the benefitof said approved cardholder; calculating a rebate as a percentage of thenet-purchases in said card payment instrument account periodically; andfunding said investment account with said rebate, wherein said rebate isthe only funding of the investment account through said card paymentinstrument account.
 2. The computerized method of claim 1, wherein saidcard payment instrument account is established by a first financialinstitution and said investment account is established by a secondfinancial institution.
 3. The computerized method of claim 2, whereinsaid first financial institution is a bank and said second financialinstitutions is an investment account provider.
 4. The computerizedmethod of claim 1, wherein said card payment instrument account isselected from the group consisting of a credit card account, a storedvalue card account, a debit card account, a multi-featured credit ondebit card account and combinations thereof.
 5. The computerized methodof claim 1, wherein said investment account is selected from the groupconsisting of a mutual fund account, stock account, an individualretirement account, a 401(k) plan account, a savings account and acertificate of deposit account e-brokerage account, money market fund,employee stock purchase account.
 6. The computerized method of claim 1,wherein said card payment instrument account is a credit card accountand said investment account is a mutual fund account.
 7. Thecomputerized method of claim 1, wherein said rebate is calculated eachmonth as a percentage of the net-purchases in said card paymentinstrument account.
 8. The computerized method of claim 1, wherein saidrebate is transferred to said investment account once or twice a year.9. The computerized method of claim 1, further comprising issuing astatement to said cardholder including said rebate periodically.
 10. Thecomputerized method of claim 1, further comprising issuing an investmentaccount statement to said cardholder.
 11. A computerized methodcomprising: a credit card company establishing a credit card account foran approved cardholder; notifying an investment account provider partnerto set-up a mutual fund account for the benefit of said approvedcardholder; monitoring the net-purchases in said credit card account andcalculating a rebate as a percentage of said net-purchases periodically;transferring the rebate to the mutual fund account periodically, whereinsaid rebate is the only funding of the mutual fund account accomplishedthrough the credit card account; and issuing a mutual fund or investmentaccount statement to said cardholder
 12. The computerized method ofclaim 11, wherein said rebate is calculated each month as a percentageof the net-purchases in said card payment instrument account.
 13. Thecomputerized method of claim 11, wherein said rebate is transferred tothe mutual fund account once or twice a year.
 14. A computerized methodcomprising: a credit card company establishing a credit card account foran approved cardholder; notifying an investment account provider partnerto set-up an inactive mutual fund account for the benefit of saidapproved cardholder; monitoring the net-purchases in said credit cardaccount and calculating a rebate as a percentage of said net-purchasesperiodically; issuing a statement to said cardholder including saidcalculated rebate and an offer to activate and fund said mutual fundaccount with said rebate at the end of a predetermined time period;activating said mutual fund account upon acceptance of the offer by thecardholder; transferring the rebate to the activated mutual fundaccount; and issuing a mutual fund statement to said cardholder.
 15. Thecomputerized method of claim 14, wherein said rebate is calculated eachmonth as a percentage of the net-purchases in said card paymentinstrument account.
 16. The computerized method of claim 14, whereinsaid rebate is transferred to the mutual fund account once or twice ayear.
 17. A card payment instrument based system, comprising: a creditcard issuer system for establishing card payment instrument accountshaving a rebate feature for approved cardholders: means for establishinginvestment accounts for the benefit of said approved cardholders saidinvestment account means being operatively connected with said creditcard issuer system; means for calculating said rebate for each approvedcardholder based on card usage periodically; and means for funding saidinvestment accounts with said rebate periodically wherein said rebate isthe only funding of said investment account through said card paymentinstrument account.
 18. The system of claim 17, wherein said credit cardissuer and said investment account means are operated by separatefinancial entities.
 19. The system of claim 17, wherein said fundingmeans comprise a check or wire transfer of funds for the rebate from thecard issuer system to the investment account.
 20. The system of claim17, wherein said funding means comprise an electronic transfer of fundsfor the rebate balance from the card issuer system to the investmentaccount.
 21. The system of claim 17, wherein said funding means comprisea two-party check issued to the cardholder.
 22. The system of claim 17,wherein said card payment instrument account is selected from the groupconsisting of a credit card account, a stored value card account, adebit card account, a multi-featured credit or debit card account andcombinations thereof.
 23. The system of claim 17, wherein saidinvestment account is selected from the group consisting of a mutualfund account, stock account, an individual retirement account, a 401(k)plan account, a savings account, a certificate of deposit account, ane-brokerage account, a money market fund, and an employee stock purchaseaccount.
 24. The system of claim 17, wherein said card paymentinstrument is a credit card account and said investment account is amutual fund account.
 25. The system of claim 17, wherein the usagerebate is based on a fixed, predetermined percentage of card usage in aperiod.
 26. The system of claim 17, wherein the usage rebate is based ona fixed, predetermined percentage of the net-purchases in the instrumentaccount in a period.
 27. The system of claim 17, wherein said cardpayment instrument accounts comprise card payment instrument cards thatare issued to approved cardholders and are marked with information ofthe identity of the investment account provider.
 28. The system of claim17, further comprising means for generating and issuing acredit-instrument statement to said approved consumers.